On 1 January 2014, Davie Services Issued $20 000 of 8

Multiple Choice

On 1 January 2014, Davie Services issued $20 000 of 8% debentures that mature in five years. They were sold at discount, for a total of $19 000. On 1 January 2019, when the debentures mature, Davie Services will make the final principal payment. That entry will be which of the following?

A) Debit Debenture discount for $1 000 and credit Cash for $1 000.
B) Debit Debentures payable for $19 000, debit Debenture discount for $1 000 and credit Cash for $19 000.
C) Debit Debentures payable for $19 000 and credit Cash for $1 000.
D) Debit Debentures payable for $20 000 and credit Cash for $20 000.